Options


Options are for those looking increase income, manage risk and take advantage of time sensitive opportunities. This section is for those who are using Fundamental Trends option strategies:

  • cash-secured put selling for building stock positions and generating income…
  • covered call writing for trimming positions and generating income…
  • LEAP call buying for when large opportunities present themselves, such as after major corrections…
  • Swing trading of calls and puts for our R.A.R.E. members.

Option selling is a professional strategy that takes some getting used to, however, if you are a long-term investor with a contrarian streak who likes to add income to the bottom line, this is THE strategy worth learning.

Before making any options trades, read Characteristics & Risks of Standardized Options, study the CBOE Education Center and engage in paper (pretend) trading for an extended period before trading options.

Also, read this article:

Don’t You Dare Trade Options Until You Read This!!!

Most trades are hidden, however, several recent trades and most older trades have been released to serve as samples. More will be released as the options expire.

Options Ideas 9/14/2020

This article should be used in conjunction with the Stocks of the Week article for the same date. Option Opportunities Selling cash-secured puts on any of the stocks in the “Stocks You Can Buy” section is always a possibility. High volatility to the downside, presuming our thesis isn’t broken is always good for premium.  Generally speaking, I like to sell puts on growth stocks and just buy the dividend stocks […]

Option Ideas 8/25/20

Several covered calls, cash-secured puts and hedges using oil stocks are featured this week. With the market teetering and heading into volatile period, hedging might be the best move. Members only. Become a member using code “Smart50” for an additional 50% off your already 50% discounted first year membership. Try any stock strategy for 75% off your first year.

Option Selling Ideas – 7/20/20

Summary Covered call spreadsheet. Cash-secured put spreadsheet. Ask questions in comments and at MoSI Option Selling chat. Each Monday I put out lists of covered calls and cash-secured puts using screens at BarCharts. I am screening for VSL stocks, as well as, an expanded universe of stocks that used to be on the VSL. Stocks no longer on the VSL should have covered calls written near the money in hopes […]

Swinging For The Fences: From Hedging To Being Net Negative On SPY And Oil Stocks

Weekly swing trading ideas in shorthand. Mind your allocations. Manage your risk. Build your charts. Understand the indicators. SPY Puts The easiest way to hedge is to buy SPDR S&P 500 ETF $SPY puts. You don’t want to pay a lot for time value, so rarely go more than about 10 weeks out. Last Thursday I suggested buying the Aug $295 SPY puts under $10. I did and sold half […]

Quick Thoughts: Enphase

Summary Enphase operates in a duopoly with Solar Edge in the solar microinverters space. Enphase is expanding into energy management which is a natural flow. I believe this stock will reach $200 per share by the middle 2020s. It currently trades around $50. If you are a growth investor, you should look to acquire Enphase for a full position 2%-4% of net asset value. If you are a primarily focused […]

Buying Portfolio Hedges Now

We have been talking about hedging in the R.A.R.E. chat room for weeks. The current level of the S&P 500 $SPY is at a major resistance zone. I am not sure if there is enough hopium or dollars from small investors to push any higher. Also, the Fed is reducing market supports every week or two, so that rocket fuel is about spent until another round of stimulus. Very simply […]

3 Stock Market Scenarios Short To Intermediate Term

Today we game out the potential scenarios for the stock market in the short, intermediate and long-term. While the rally might continue a bit longer, there is a certainty of at least a retracing of the rally for a small correction. There are also worse outcomes if the economy does not have the “V” shape recovery that many are hoping for. This is piece is open to members and those with a “Free Library Card.”

Swinging For The Fences – Week Of May 11th

Each Monday morning I am putting out a piece with a few swing trade ideas to focus on for the week. It is up to you to participate in analysis and seek risk management tools that work for you. If you expect to just follow along, expect to be disappointed. Risk Management & Basic Trade Criteria Risk management will involve applying technical analysis and having stop orders on most trades. […]